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Today, digital transformation has become a key issue for every company, organization and even government department around the world. Just as the invention and popularization of steam engines, power and information technology have caused three industrial revolutions in the history of mankind in the past two hundred years, breakthroughs and innovations in digital technologies such as cloud computing, big data, internet of things, artificial intelligence, and mixed reality have become The fourth wave of industrial change has taken place in all walks of life around the world. The digital transformation brings not only more efficient and smarter productivity tools, but also puts forward new requirements for business models, organizational structures, and technology platforms of enterprises and organizations. Only by actively facing and meeting the challenges of digital transformation can we This change will advance with the times and take the lead.
To unveil the mystery of digital transformation, Microsoft and the world’s leading IT industry analyst company IDC have collaborated on 15 economies in the Asia-Pacific region to implement a theme of “Unlocking the Digital Impact of Economic Transformation in the Asia-Pacific Market[1]†Research. The research report shows that by 2021, the digital transformation will contribute 1% of the annual growth of China's GDP, worth US$716 billion. While promoting national economic growth, the digital transformation will also bring more smart, safer cities to China, more equitable education and more extensive training opportunities for talents, so that everyone can truly benefit from it.
Leading the digital transformation and seizing the fast track of innovation and development
There is no doubt that China is one of the countries in the world that are most active in embracing technology innovation and digital transformation. Under the support of a series of favorable policies such as the "innovation-driven development" strategy, the "Made in China 2025" action plan, the "Internet +" action plan, the "One Belt and One Road" initiative, and the "popular entrepreneurship and innovation" call, the high-speed rail network, The "four new inventions" represented by e-commerce, mobile payment, and sharing economy have become the card for China's innovation and lead the world trend.
In 2017, digital products and services based on digital technologies such as cloud computing, mobile computing, Internet of things, and artificial intelligence contributed approximately 7% to the total GDP of China, which is higher than the average level of 6% in the Asia-Pacific region. According to market forecast, by 2021, the influence of digital transformation will further deepen into all walks of life, about two-thirds of service companies (such as banks, hospitals, health institutions), and 50% of industrial enterprises (manufacturing and construction ) and 10% of agricultural production will be positively affected by digital technology. By then, the proportion of digital products and services in China's GDP will reach 65% - still ahead of the average of 60% in the Asia Pacific market.
The survey shows that currently 74% of Chinese companies have embarked on the journey of digital transformation. 7% of Chinese companies have become the “leaders†of digital transformation. They have formulated a complete or continuous digital transformation strategy. Digital products and services related income has accounted for about 1/3 of their total revenue. From these "leaders" perspective, increasing the customer support, reducing costs, increasing profit margins, enhancing productivity, and increasing customer acquisition rates are the biggest benefits of digital transformation and digital transformation in different businesses. In the scenario, the "leader" business has brought about a 20-30% increase in efficiency, which is almost twice the traditional business model.
Meet the "leaders" and share 714 billion U.S. dollars of opportunity
By analyzing the successful experiences of the leaders in digital transformation, we found that these leaders have these common characteristics:
• Focus on the emergence of competitors and disruptive technologies: The digital economy has brought more different types of competitors, as well as emerging technologies such as artificial intelligence, which are destined to subvert the existing business model. The survey shows that the core technologies most concerned about in the Chinese market are: big data analysis, mobile computing, cloud computing, e-commerce, security, and social media; the most emerging technologies are: artificial intelligence/cognition/robots Technology, IoT, hybrid/enhanced/virtual reality, next-generation user interfaces, data links.
Focus on business agility and innovation culture: In solving business problems, the "leader" of digital transformation will strive to create a culture of agility and innovation to win the competition. In contrast, the traditional model focuses more on how to improve employee productivity and profitability.
Assess the effectiveness of the digital transformation: Companies in the Asia-Pacific region are introducing new key performance indicators (KPIs) to assess the effectiveness of digital transformation, such as the efficiency of processes (40.5%), data capital (35.3%) most valued by Chinese companies, and Used to measure user word of mouth "net recommendation value (NPS)" and so on. Companies have realized that data is becoming the oil of the digital economy, and the “leader†is more focused on increasing revenue and productivity through data mining and further driving changes in business models.
· Be good at discovering the challenges in the process of digital transformation: In addition to the key challenges in terms of technology and cyber security threats, the “leader†places special emphasis on enhancing the ability to drive data. They will actively use advanced data analysis to gain guidance in a rapidly changing market. A forward-looking insight into action.
Investing in artificial intelligence and the Internet of Things: Emerging technologies such as artificial intelligence (including cognitive services and robotics) and the Internet of Things are areas that the "leader" has invested heavily in 2018. In addition, the "leader" is also interested in investing in big data analysis and hopes to gain insights to guide action through data mining.
For more companies, if they want to seize the major opportunities for the rapid development of digital transformation in the next few years, they must look to the “leaders†to discover market insights from their internal data capital and promote digital innovation of products and services. And on the premise of ensuring safety, it cooperates with a wider ecosystem including employees, customers, and partners to truly activate the hidden value of the data.
Leading the "Leader" to the International, Helping the Industry Upgrade Digitally
As a platform and productivity company, Microsoft has actively exerted our unique technological advantages and experience, allowing more Chinese companies to use Microsoft's mature, trusted, comprehensive, agile and intelligent platforms and solutions to achieve success in digital transformation. Drive the entire industry to upgrade. We make full use of the advantages of global resources to help more Chinese companies to globalize. Mobike, one of the representatives of the "New Four Big Inventions," has used Azure's global platform services to rapidly expand its business to seven overseas markets. Last week, Microsoft and Xiaomi signed a memorandum of strategic cooperation with Microsoft cloud services and artificial intelligence technology to help Xiaomi products and services enter the overseas market.
How can we help more Chinese companies, find their own direction in digital transformation, and jointly create great opportunities in the Chinese market, we have the following suggestions:
· Create a digital culture: Enterprises and organizations must establish a cultural atmosphere that encourages mutual collaboration so that different functional departments can communicate with each other without barriers. At the same time, a dynamic and mature ecosystem needs to be established between customers and partners. Such an organizational structure can help companies and departments better share and use data, make decisions, and truly meet the needs of customers and partners.
·Building an information ecosystem: In the digital world, companies will acquire massive amounts of data both internally and externally. The key to becoming a “leader†is how to convert data into capital, and in an open and credible manner, Enable the sharing and collaboration of internal and external data. In addition, proper data strategies can also pave the way for future AI strategies for companies to better find correlations, insights, and trends from the data.
• Embrace micro-innovation: In most cases, digital transformation has not been a revolutionary change from the beginning, but started with a series of micro-innovations. After getting positive business results through these small-scale, quick-impact projects, we will gradually expand to a larger, more extensive digital transformation plan.
· Fostering future-proof skills for individuals and businesses: Today's companies must reexamine talent and skills training so that employees have future-proof skills, such as the ability to solve complex problems, judgmental thinking, and the creativity needed for the digital economy. More importantly, companies need to rebalance their manpower arrangements, obtain and attract more digital talents, and create a flexible working model with an open mind to better adapt to the skilled talent market. For digital talents, according to a recent study published by LinkedIn, [2] the three most sought-after vocational skills in China are big data, artificial intelligence and cloud computing.
Everyone's digital transformation, empowering everyone
Digital transformation is an industrial revolution that covers a wide range of industries and industries around the world. Just like today's ubiquitous power and information technologies, the impact of digital transformation will also be closely related to each of us. According to IDC's survey, the impact of digital transformation on Chinese social life will be mainly reflected in three levels: smarter, safer and more efficient cities; more equitable education and broader talent training opportunities; higher value Jobs.
Like every industrial revolution in the past, new technologies bring new productivity tools that necessarily require producers to have new skills to harness it. The survey shows that in the next three years, 84% of the jobs in the Chinese market will be affected by digital transformation. Today, 59% of jobs in the market need to be retrained or improved in order to adapt to the higher value role of the digital age.
In China, Microsoft unanimously spared no effort to cooperate fully with all parties to fully promote the digital transformation of the education industry and cultivate future-oriented technology talents. Just last week, Microsoft had just signed up with the Education Management Information Center of the Ministry of Education to launch the “Virtual Reality Technology (VR) Teaching Application Training and Laboratory Construction Projectâ€, focusing on the latest virtual reality technology, promoting the cultivation of new technology skills and teaching experiments Room construction, but also in-depth discussion of virtual reality technology and other new technologies, new models in the education industry.
What needs to be emphasized is that the transformation and upgrading of jobs does not mean that they are replaced, but that they can keep up with the times by learning new skills. In fact, nearly 54% of Chinese corporate policy makers believe that the new generation of young workers already have the skills needed for future work, and do not need to worry about the challenges of digital transformation, but should be more active in seizing future opportunities.
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